Tesla’s strategic embrace of Bitcoin (BTC) can have a dramatic affect on company adoption of the digital asset, in accordance with Dan Ives of Wedbush Securities.
In a Monday interview with CNBC, Ives said Tesla’s publicity to Bitcoin is “not only a fad,” however a part of a long-term technique that’s pushed by an funding thesis and enterprise thesis.
“I believe Tesla goes to double down on its Bitcoin funding,” he stated.
“Little doubt that is one thing @elonmusk and @Tesla they will dive into the deep finish of the pool on #bitcoin as a result of they are not simply doing it from an funding perspective, however from a transaction perspective,” says Wedbush’s Dan Ives on $TSLA and #btc. pic.twitter.com/0Wt2IHCdZI
— Squawk Field (@SquawkCNBC) February 22, 2021
“No double that is one thing Elon Musk and Tesla […] they’re going to dive into the deep finish of the pool on Bitcoin as a result of they’re not simply doing it from an funding perspective however from a transactional perspective.”
Ives was referring to Tesla’s latest determination to allocate $1.5 billion to Bitcoin and start accepting the digital asset as a form of payment. On the time of the interview, Tesla had made about $1 billion in paper features on its BTC commerce. “That’s extra they’ve constructed from a revenue in all EV gross sales” in 2020, he stated.
Wedbush Securities believes that 3% to five% of publicly-listed corporations will go down the Bitcoin rabbit gap over the following 12 to 18 months, though their adoption might be restricted to investments solely, Ives stated. The 5% threshold is unlikely to be damaged with out extra regulatory readability round BTC.
Ives’ commentary on Tesla mirrors his recent analysis on Bitcoin, the place he described the digital asset as a part of a a lot bigger adoption story. Bitcoin mania “will not be a fad in our opinion, however quite the beginning of a brand new age on the digital foreign money entrance,” he stated.